FERC Expenditures for the Trans-Alaska Pipeline System (TAPS) Case

GAO reviewed the Federal Energy Regulatory Commission's (FERC) contracting and small purchases procedures as they related to the Trans Alaska Pipeline System rate case.

In the course of its review, GAO discovered a need to initiate actions to recover about $71,800 from Alyeska for records reproduction services paid for by FERC under a cost-sharing agreement between FERC, Alyeska, and the State of Alaska. The FERC staff made at least one attempt to begin collecting the moneys in late 1980. An Alyeska representative reported that he had agreed with the FERC proposal for payment; however, he requested documentation for the expenditures prior to making a commitment. Because no documentation was provided, no off-setting discovery expenditures were made. Later attempts to collect a larger sum owed the Government were also fruitless. GAO believes that, based on the procurement records, FERC should be able to support the amount due from Alyeska. Because of the interest cost on Treasury borrowings, further delay in recovering the moneys due the Government will add to the interest costs incurred to date of approximately $18,600. Therefore, the appropriate supporting documentation should be assembled and presented to Alyeska for immediate payment.

Recommendations

Our recommendations from this work are listed below with a Contact for more information. Status will change from "In process" to "Open," "Closed - implemented," or "Closed - not implemented" based on our follow up work.

Director: Gerald H. Elsken Team: General Accounting Office: Energy and Minerals Division Phone: (202) 376-9710